Wondering how to save on car insurance? When it comes to renewing your car insurance you need to be pretty savvy to keep the costs down writes Geraldine Herbert.
1. Shop around before you renew
Always take the time to shop around and don’t be tempted to accept the renewal quote that pops through the door. Once you have received your renewal quote always go to the website of your current insurance provider and get a quote as a new customer and not an existing one. Insurance companies do not reward loyalty so you will always get a better one as a new customer. You can then go back to your insurance company and ask them to match the online price. Prices vary from company to company so check out other insurance companies and also online brokers like CoverinaClick.ie or contact a broker directly.
2. Compare Quotes
Different policies have different terms and conditions so don’t simply settle for the cheapest quotes, compare all insurance quotes on a like-for-like basis though. Some may offer breakdown cover as an optional extra while others may have a cheaper premium but a higher excess, so remember the excess is the part of a claim that you will have to pay.
3. Don’t over-insure
Always put a realistic value on your car to save on insurance. When asked to value our cars most of us have a pretty inflated price in our mind so it is worth checking similar makes and models online to get an idea of the replacement cost. Remember in the case of an accident the insurance company will only pay out the market value of the car at the time of the claim. However, be careful not to undervalue your car.
4. Consider Telematics
A telematics device or a “Black box” is provided by an insurance company to track your driving and is becoming more popular particularly among new drivers as a way to reduce insurance costs. The idea is that you will have your individual driving style assessed e.g your speed; the time of day you drive; how you brake, accelerate and take corners, etc and your premium costs will reflect that.
5. Pay in full
If you want to avoid paying interest pay your insurance in one go instead of monthly installments by doing this you can save up to 20%.
6. Don’t modify your car
The more changes you make the more additional costs you risk accumulating so resist the temptation to give your car a “The Fast and the Furious” makeover to save on insurance.
6. Disclose material Facts
It is always best to disclose penalty points and anything else you feel might be irrelevant. Insurance companies apply different criteria so it may or not have an impact on your premium but in the event of an accident if your claim may be repudiated if you weren’t honest with the insurance company when taking out the policy.
7. Reduce how much you drive
Lowering your annual mileage can have a big impact on the cost of your insurance premium as the more you drive the more likely you are to be involved in a collision.
8. Get the right cover for you
You’ll also need to consider the type of cover that best suits your needs so choose between a comprehensive or third-party cover carefully. Always check the differences between the price of both, as it might not be financially sound to pay the difference depending on the car’s value but remember third-party cover is not always the cheapest option.
10. Keep your car safe
The safer your car is tucked away at night, the happier your insurance company will be, so any additional security features you add can make a difference to your premium. An alarm, immobilizer or keeping your car in a garage overnight will not only give you peace of mind but may reduce your premium.
About the Author
Contributing Editor and Motoring Columnist for the Sunday Independent and editor of wheelsforwomen.ie. Geraldine Herbert is also a regular contributor to Good Housekeeping (UK) and to RTÉ, Newstalk, TodayFM and BBC Radio. You can follow Geraldine on Twitter at @GerHerbert1.
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